Broadcom Inc. Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Headline Results

  • Q1 FY2026 revenue reached a record 19.3 billion dollars, up 29 percent year-over-year and ahead of guidance.
  • Adjusted EBITDA reached a record 13.1 billion dollars, representing 68 percent of revenue (up from 67 percent guidance).
  • Operating income was 12.8 billion dollars, up 31 percent year-over-year.
  • Free cash flow was 8 billion dollars (41 percent of revenue).
  • Broadcom repurchased 7.8 billion dollars of shares and paid 3.1 billion dollars in dividends.
  • The Board authorized an additional 10 billion dollars to the share repurchase program through 2026.

Q2 FY2026 Outlook

  • Expected Q2 consolidated revenue: approximately 22 billion dollars, up 47 percent year-over-year (significant acceleration from Q1 growth of 29 percent).
  • Expected adjusted EBITDA: approximately 68 percent of revenue.
  • Semiconductor revenue expected at 14.8 billion dollars, up 76 percent year-over-year.
  • AI semiconductor revenue expected at 10.7 billion dollars, up roughly 140 percent year-over-year.
  • Infrastructure Software revenue expected at 7.2 billion dollars, up 9 percent year-over-year.

Semiconductor Solutions Performance

  • Q1 semiconductor revenue was 12.5 billion dollars, up 52 percent year-over-year.

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Operator: Welcome to Broadcom Inc.'s First Quarter Fiscal Year 2026 Financial Results Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc. Ji Yoo: Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; Charlie Kawwas, President, Semiconductor Solutions Group; and Ram Velaga, President, Infrastructure Software Group. Broadcom distributed a press release and financial tables after the market closed, describing our financial performance for the first quarter fiscal year 2026. If you did not receive a copy, you may obtain the information from the Investor section of Broadcom's website at broadcom.com. This conference call is being webcast live, and an audio replay of the call can be accessed for 1 year through the Investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our first quarter fiscal year 2026 results, guidance for our second quarter of fiscal year 2026 as well as commentary regarding the business environment. We'll take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition

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